To prevent a trust administration from dragging on for months or even years, there are time limitations imposed upon Orange County trustees as they carry out their duties. Each task within the checklist of trustee duties is subject to its own deadline. What can happen if the trustee does not abide by these time limitations? The following are several examples:
- Trust assets can be harmed if the trustee does not take control within a quick period after the settlor of the trust passes away. For example, if real estate is not managed by the trustee, its value may suffer, as it is not being taken care of.
- Trust assets may deplete in value unnecessarily if they are not distributed to the beneficiaries within reasonable time limitations.
- The trust may have to pay additional taxes or probate court fees if it is not terminated within a reasonable timeframe.
- The beneficiaries of the trust may pursue an order from the probate court to force the trustee to take a certain action if it has not been done. This will result in unnecessary court oversight, as well as legal fees.
- The trust may be forced to pay penalties and fees if filings are not made on time with the IRS.
- The estate may suffer harmful tax-related consequences if certain deadlines are not met.
It is vital to the success of a trust administration that the Orange County trustee abide by all time limitations. Acting quickly and diligently will help to ensure that the administration process runs smoothly. To learn more about the trust administration process, view our free guide, Understanding the Revocable Living Trust - In Language that Anyone Can Understand in 8 Minutes. For additional guidance in serving as a trustee during the implementation of a trust, contact an experienced Orange County trust administration lawyer today. Call our office at (714) 459 -5481 for a consultation.